El Salvador’s President Nayib Bukele recently drew attention to the country’s unrealized profits from its Bitcoin investments on social media, as the cryptocurrency surpassed $100,000 for the first time.
On December 5th, Bitcoin reached the milestone of $100,000, leading to celebrations among the crypto community. On the same day, Autism Capital, a crypto-focused account on X, requested Bukele to share El Salvador’s Bitcoin portfolio as a way to “dunk on the haters.” Bukele responded by posting the country’s BTC holdings on X.
Bukele’s latest update reveals that the country has spent nearly $270 million on Bitcoin since initially adopting the cryptocurrency. The portfolio indicates that no Bitcoin has been sold, and the unrealized gains now exceed $333 million.
El Salvador’s Bitcoin journey began when it became the first country to adopt Bitcoin as legal tender. On September 7, 2021, the Bitcoin Law came into effect, officially recognizing BTC as a currency for financial transactions within El Salvador. On September 6, the government also made its first purchase of 200 BTC.
Since then, El Salvador has continued to acquire Bitcoin. On November 17, 2022, Bukele announced a dollar-cost averaging (DCA) strategy, committing to purchasing one Bitcoin daily.
Nayib Tracker, a platform dedicated to monitoring the country’s Bitcoin investments, reports that El Salvador currently holds 6,180 BTC. The tracker estimates the average purchase price at $44,739.88 per Bitcoin, indicating a 122% increase based on current market prices.
Apart from the profits from BTC, El Salvador has also reported other benefits since adopting Bitcoin. The country’s decision to embrace Bitcoin has boosted tourism.
However, despite the reported success, the International Monetary Fund (IMF) has consistently urged El Salvador to reconsider its Bitcoin policies. On January 25, 2022, the IMF requested that El Salvador stop recognizing BTC as legal tender, citing risks to financial stability, although acknowledging the potential for increased financial inclusion.
On October 3, the IMF renewed its call for El Salvador to scale back its Bitcoin policies. Julie Kozack, the IMF’s communications director, recommended narrowing the scope of the country’s Bitcoin Law and limiting the public sector’s exposure to Bitcoin.